LOOSE CHANGE

LOOSE CHANGE

Since its inception in March, Salomon Brothers' derivatives subsidiary Salomon Swapco, Inc. (Swapco), has directly executed nearly 100 transactions with about $10 billion notional amount (FX Week, February 15). Swapco has clients in North America, Europe and Asia and they include multinational corporations, banks, insurance and finance companies plus government agencies. Swapco is rated triple-A by the U.S. credit-ratings agencies Moody's Investors Service, Standard & Poor's Corp., and Fitch

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Króna in chaos during Iceland's meltdown

REYKJAVIK - Confusion reigned in Icelandic króna trading last week, as the country's central bank, Sedlabanki, abandoned its peg to a basket of nine currencies a day after it was effected.

Death by association

The application of credit technology to diverse underlyings led to the birth of collateralised foreign exchange obligations in 2006. But despite being built from uncorrelated underlyings, their fortunes have proven highly correlated with the wider market…

Nothing beats a good trading scandal

The past week has produced a frenzy of headlines, from the FTSE index hitting seven-year lows and the Federal Reserve's surprise 75 basis point rate cut, to the billions of dollars in writedowns at major dealers. But nothing grabs the attention as much…

Rating agencies assess CP markets

EUROPE – Fitch Ratings and Moody's sought to capture the effect of the commercial paper (CP) market's lack of liquidity on the wider banking outlook in two conference calls last week.

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